Effective: July 1, 1997
Revised: May 8, 2017
Related Policy, Guidelines for Inventory of Capitalized Equipment
A. Recording and Verification
Equipment item values equal to or greater than $5,000 should be charged to account codes 8101-8104, and will be tagged and added to the University's detailed inventory records. All equipment values less than $5,000 with a useful life of more than one year should be coded to the 7214-7216 range of University account codes.
Accounting Services, directed by the University Controller, is responsible for maintaining the detailed inventory records for University equipment items equal to or greater than $5,000.
Tagging University Equipment
Upon the issuance of a purchase order for equipment equal to or greater than $5,000, the Fixed Assets Manager initiates an equipment decal and information sheet, and forwards the decal and information to the University department ultimately receiving the equipment. Upon receipt, the department equipment liaison affixes the decal to the equipment, completes the decal information sheet and returns it to the Fixed Assets Manager, Accounting Services, Administrative Services Building.
Annual Inventory Verification
After the fiscal year has been closed, the Fixed Assets Manager will email Business Officers a PDF and/or excel copy of the Budget Center’s detailed equipment inventory listing of items valued equal to or greater than $5,000. The Business Officers are responsible for the distribution of the inventory listing to departmental equipment liaisons. Departmental equipment liaisons or their designated representative will be contacted by the Fixed Assets division and are responsible for assisting the Fixed Assets personnel with the annual inventory walk-through, certifying the location and usage of all items on the list. After completion of the walk-through, departmental liaisons or their representative sign the Annual Equipment Inventory Certification form verifying that the inventory has been completed. The Fixed Assets Manager will update the inventory details and send an amended inventory listing of completed departments and the signed Annual Equipment Inventory Certification form to the appropriate Business Office for their records.
During the year each department is responsible for notifying the Fixed Assets Manager, Accounting Services, Administrative Services Building of changes of equipment location.
B. Departmental Responsibilities
Proper Use and Protection
Department heads are responsible for the proper use and protection of all University property in their custody. Meeting the criteria for the responsibility of custody and use of University equipment includes:
- Appointing individuals to be responsible for equipment, property disposals and transfers, and physical security. Equipment liaisons must have the following Job Duties and Success Criteria added to performance evaluations.
- Job Duty – Works in conjunction with the University Fixed Assets personnel; responsible for identifying, recording, decaling and verifying university equipment inventory; responsible for tracking and entering all non-capitalized electronic items in the Departmental Asset Tracking system in accordance with Budget Center guidelines.
- Success Criteria – Routinely notifies the Fixed Assets Manager of updates to equipment description information and location; processes CUBO 206 forms for transfers, trade-ins and surplus; assists Fixed Assets personnel with university equipment inventory verification, enters, updates and tracks electronic equipment less than $5,000 in the web-based Departmental Assets Tracking system.
- Reviewing annual inventory listing of University level equipment for accuracy and completeness.
- Promptly reporting theft, loss or disappearance to Campus Police.
C. Acquisition of Equipment
Methods of Acquisition
The following methods may be used to acquire University equipment:
- Transfer from another department
- Leased equipment
- Transfer from another University
- Surplus federal equipment
- Surplus state equipment
- Loaned or borrowed equipment
- Exchanged, returned and replacement of equipment
Purchase of Equipment
If the purchased equipment is equal to or greater than $5,000, capitalize the original cost of the basic unit plus related sales tax, freight, installation and other costs necessary to put in operation.
Transfer From Another Department
If equipment cost is equal to or greater than $5,000, complete a University CUBO 206 form and forward to Surplus Property, Administrative Services Building. Surplus Property will forward the signed form to the Fixed Assets Manager, Accounting Services, Administrative Services Building. The equipment item will retain the same inventory tag number and be carried at the original cost.
All equipment gifts in kind (valued $1,000 and greater) may be accepted at the departmental level but must be reported to the Gift Management Office, 110 Daniel Drive on a Gift-In-Kind report. Gifts valued at equal to or greater than $5,000 will ultimately be capitalized as University level equipment. The gift must be accompanied by an IRS form 8282 and signed by a registered appraiser if the gift is to be acknowledged and a tax deduction taken. If no acknowledgment or deduction is to occur, a knowledgeable University staff member may determine the fair market value to be used for internal purposes only.
Equipment equal to or greater than $5,000 acquired through lease-purchase arrangements that ultimately transfer title to the University will be capitalized at the inception of the lease at fair market value. Subsequent installment payments will be coded to principal (8198) and interest (7315) accounts, instead of equipment (8xxx) object codes.
All other lease arrangements, including equipment equal to or greater than $5,000, will be accounted for using the leased equipment (7314) object code. These leases may have various options at the end of the lease, including an option to purchase. Capital leases are determined by Accounting Services. If there is an option to buy at the end of the lease period, please contact Accounting Services for determination.
Equipment fabricated from component parts by a campus shop should be capitalized and tagged if the cost is equal to or greater than $5,000.00. Cost of manufacture should include the cost of the components, sales tax, freight, and any other direct costs of installation. University labor costs should not be included.
Transfer From Another University
When equipment is transferred from another institution or agency, it is the responsibility of the department head or principal investigator to notify the Fixed Assets Manager, Accounting Services, Administrative Services Building, by providing a copy of the documents which transmitted the property to Clemson. For items equal to or greater than $5,000.00, the Fixed Assets Manager will record the equipment and provide a University inventory tag.
Surplus Federal Equipment
Equipment procured as federal excess through the US Department of Agriculture’s Federal Excess Property Program must be used by the University for the purpose(s) for which it was obtained. Equipment shall be placed in use within 90 days of acquisition and must be tied directly to USDA Smith-Lever, Hatch or McIntyre-Stennis funded projects. The University agrees not to sell, trade, lease, lend, bail, encumber or otherwise dispose of such property without approval of the USDA and General Services Administration. A yearly inventory of federal excess equipment is required by the USDA. When the inventory is completed a copy of the signed inventory paperwork with all appropriate signatures is to be forwarded to the Fixed Assets Manager, Accounting Services, Administrative Services Building as either a hard copy or a PDF electronic copy.
Surplus State Equipment
Acquisition of equipment from the state may include service charges, freight, handling, and other procurement charges that would be costs subject to capitalization. It is the responsibility of the department head or principal investigator to notify the Fixed Assets Manager, Accounting Services, Administrative Services Building of items equal to or greater than $5,000. Fixed Assets will then record the equipment and provide a University inventory tag.
Loaned or Borrowed Equipment
On occasion equipment is loaned to or borrowed by the University for official use. All arrangements for non-owned equipment should be approved by the appropriate vice president and a definite understanding in written form should be made with the owner as to the University's obligations and responsibilities in connection with the equipment. If the University accepts responsibility in writing for damage to or loss of non-owned equipment, a copy of the agreement must be forwarded to Risk Management immediately in order that proper insurance coverage may be obtained.
Exchanged, Returned and Replacement of Equipment
If equipment needs to be exchanged, returned or replaced due to non-performance or other issues, the Procurement and Business Services office must be notified and will work with the department on a case by case basis on whether they need to be involved in the return process. Exchange, return or replacement of equipment would be considered equipment that is:
- Quality not as expected
- Wrong product shipped
- Damaged in shipping
- Equipment not working as described
- Other (explanation needed)
The Fixed Assets Manager must be notified when equipment is exchanged, returned or replaced by the vendor. The department must inform the Fixed Assets Manager with a written explanation along with the decal that identifies the equipment. If a decal has been applied to the equipment and it cannot or is not possible to remove the decal, the decal number must be included in the written explanation. The Fixed Assets Manager will remove the returned equipment from the AiM system and will add the written explanation as documentation.
When the vendor sends an exchanged or replacement piece of equipment, the department must notify the Fixed Assets Manager of the arrival of the new equipment along with the cost, manufacturer, model number, serial number and location. The Fixed Assets Manager will send a new decal number to the equipment liaison or the designated contact to be affixed to the new equipment. The Fixed Assets Manager will enter the replacement equipment into the AiM system along with the original decal number returned and the written explanation for documentation.
D. Federal Equipment Procedures
Federally Acquired Property Policies and Procedures
Purchase order requisitions for sponsor-funded (Fund 20) equipment are routed electronically in BuyWays to Grants and Contracts Administration-Post Award. Fiscal Managers in Grants and Contracts Administration review and approve these requisitions and notify the University’s Fixed Asset Manager of the impending purchase of federally acquired equipment. Upon receipt of the equipment, the Fixed Assets Manager records the items as federally acquired equipment into the University’s AssetWorks Inventory Management (AiM) system and prepares a decal. The decal is sent to the departmental liaison who will affix the decal and assume custodial responsibility for the equipment items.
At least annually, a listing, including both federally acquired equipment and equipment acquired from other sources, is sent to departments for verification. If federally acquired property is transferred to another institution; surplused or determined to be missing or stolen, the department responsible for the property will complete a Declaration of Surplus Property or Transfer form (CUBO 206). The department will forward the CUBO 206 form to Surplus Property and a copy to Grants and Contracts Administration. The appropriate Fiscal Manager in Grants and Contracts Administration is responsible for notifying the Fixed Assets Manager of transferred, surplused or stolen federally acquired equipment. The Fixed Assets Manager will remove the federally acquired property from the University’s inventory after receiving a copy of the CUBO 206 from Surplus Property.
When a Fund 20 sponsored project closes, the Fiscal Manager in Grants and Contracts Administration informs the Fixed Assets Manager of expiration. The Fiscal Manager is responsible for filing the final inventory report of federally acquired equipment to the sponsor.
On awards in which title vests with the Federal Government or there is Government Furnished Property (GFP), the Grants and Contracts Fiscal Manager prepares an annual report that is reviewed and signed off by the Fixed Asset Manager. The Fiscal Manager sends the report to the appropriate Federal agency.
Government Furnished Property Policies and Procedures
When Federal property is furnished to the University by a government agency, or if a Principal Investigator has Government Furnished Property delivered to Clemson University, the Federal sponsoring agency sends the award document to the University’s Office of Sponsored Programs (Pre-Award), who then routes it to the appropriate fiscal manager in Grants and Contracts Administration. Fiscal managers in Grants and Contracts Administration update sponsored projects subsidiary records regarding the GFP and notify the University Fixed Assets Manager. The Fixed Assets Manager records these items as GFP in the University’s AiM system. The Principal Investigator in possession of the equipment will assume custodial responsibility for the equipment items.
The Principal Investigator provides confirmation on an annual basis that GFP is still in use on campus or at off-site locations. For GFP utilized at off-site locations, the Principal Investigator visits the off-site facility or receives results from the facility and documents these results in progress reports. If GFP is transferred to another institution, surplused or determined to be missing or stolen, the department responsible for the property will complete a Declaration of Surplus Property or Transfer form (CUBO 206). The department will forward the CUBO 206 form to Surplus Property and a copy to Grants and Contracts Administration. The appropriate Fiscal Manager in Grants and Contracts Administration is responsible for notifying the Fixed Assets Manager of transferred, surplused or stolen federally acquired equipment. The Fixed Assets Manager will remove the federally acquired property from the University’s inventory after receiving a copy of the CUBO 206 from Surplus Property.
If a federal sponsor requires a report, the appropriate reports will be filed to the appropriate government agency.
Federal or Sponsor-Titled Property
On awards in which title vests with the Federal Government or with the Sponsor, the Grants and Contracts Administration (GCA) Fiscal Manager (FM) must address the status of the equipment and obtain disposition instructions in writing from the Contracting Officer or other responsible official at the sponsoring agency.
The Principal Investigator (PI) must notify the GCA FM if the property will be returned to the sponsor at completion of the work or if he/she wishes to request title to the property to be used for other active research. The request for title and retention of the property should include a brief justification of the research and how the equipment will be utilized. This request will be submitted by the GCA FM to the sponsor for approval with a request for further instructions on disposition of the federal/sponsor property.
Upon sponsor approval and prior to disposition, the Principal Investigator must complete and sign a CUBO 206 – Declaration of Surplus Property or Transfer Form and submit it to the Fixed Assets Manager, Accounting Services, Administrative Services Building, along with a copy of the sponsor approval letter/email.
Since the CUBO 206 form does not directly address the transfer or disposition of federal/sponsor property, a memo prepared by the PI should be included with a brief description of the property, its location, and the status of the property. The Fixed Assets Manager will update the property status in the AiM system and will send a copy to the GCA FM.
E. Disposal of Equipment
The following methods are used to dispose of University equipment:
- Transfer to another department
A University CUBO 206 form must be completed for all equipment and forwarded to Surplus Property, Procurement Services, Administrative Services Building. Equipment may be delivered by the department to the Surplus Property warehouse or the department may request to have the Surplus Property office pick up the surplus equipment. Surplus Property will then dispose of the equipment according to State Procurement Code guidelines if the equipment cannot be used elsewhere on campus. When equipment is disposed that has a value equal to or greater than $5,000, the Surplus Property office will provide a copy of the University CUBO 206 form to the Fixed Assets Manager for removal of the item from the detailed inventory listing.
Trade-in of Equipment
All equipment trade-ins, regardless of dollar value, require a completed State Materials Management Office form Number 137 along with the purchase requisition for the replacement item. If the equipment item traded in has an original cost equal to or greater than $5,000, a University CUBO 206 form should be completed or a Bill of Sale may be substituted in lieu of a CUBO 206 for vehicles. All forms are to be submitted to Procurement Services, Administrative Services Building. After Procurement Services approves the purchase, a copy of the University CUBO 206 form or Bill of Sale is forwarded to the Fixed Assets Manager, Accounting Services to remove the item from the University's detail inventory listing.
Transfer To Another Department
If equipment cost is equal to or greater than $5,000, complete a University CUBO 206 form and forward to Surplus Property, Administrative Services Building. Surplus Property will forward the signed form to the Fixed Assets Manager, Accounting Services, Administrative Services Building. The equipment item will retain the same inventory number and be carried at the original cost.
Cannibalization Of Equipment
Equipment that is equal to or greater than $5,000 and is obsolete or inoperable may be cannibalized and the parts used to repair or rebuild other equipment. Inoperable equipment may only be used for parts when it is impractical and not cost effective to repair. Departments may keep the cannibalized equipment within their division but a completed University CUBO 206 form is required to be sent to Surplus Property, Administrative Services Building, along with the inventory tag, documenting the cannibalization of equipment. Surplus Property will forward a signed copy of the University CUBO 206 form to the Fixed Assets Manager, Accounting Services, Administrative Services Building for removal of the equipment from the detailed inventory listing.
Cannibalization of federal equipment (equipment that is titled federal or government furnished) requires written approval from the appropriate agency. A University CUBO 206 form is required to be sent to Surplus Property, Administrative Services Building, along with the inventory tag and federal documentation approving the cannibalization. Surplus Property will forward a signed copy of the completed CUBO 206 and federal documentation to the Fixed Assets Manager, Accounting Services, Administrative Services Building, when the equipment is equal to or greater than $5,000.
Campus Security should be notified so that an investigation or other appropriate action may be taken. Complete a CUBO 206 form, attach a copy of the security report and forward to Surplus Property, Administrative Services Building. Surplus Property will forward the signed CUBO 206 with a copy of the security report to the Fixed Assets Manager, Accounting Services, Administrative Services Building.
If a piece of capitalized equipment cannot be located, an extensive search must be conducted to find it. If it still cannot be found, a CUBO 206 must be completed and signed by the department head along with a letter stating that a search has been done and explaining as to why they feel it should be removed from the university's inventory. The completed CUBO 206 and a copy of the documentation is forwarded to Surplus Property, Administrative Services Building. Surplus Property will forward the signed CUBO 206 with a copy of the documentation to the Fixed Assets Manager, Accounting Services, Administrative Building. Upon review by the Fixed Assets Manager the decision will be made whether to remove the equipment from the inventory or if further action should be taken
F. Insurance On University Equipment
All University equipment valued in excess of the State Insurance Reserve Fund deductible (currently $1,000) is insured for losses resulting from theft and natural disaster. Losses should be reported to Risk Management upon occurrence. In addition, a completed University CUBO 206 form should be forwarded to Surplus Property, Administrative Services Building. Surplus Property will forward the CUBO 206 to the Fixed Assets Manager, Accounting Service, Administrative Services Building to remove the equipment item from the University's detailed inventory listing.
G. Equipment Titles
ALL car titles are to be registered under the State of South Carolina. The original title will be held in a repository maintained by the State of South Carolina, State Fleet Management, Columbia, South Carolina. For assistance and information regarding purchasing or disposing of any University owned/leased/loaned motor vehicle, contact Clemson University Transportation Services – Motor Pool, Assistant Fleet Manager.
All Other Titles
All other equipment that have a title (boats, trailers, etc.) are to be registered under Clemson University, Fixed Assets Manager, Administration Services Bldg., 108 Perimeter Rd., Clemson, SC 29634. The original title will be held in a repository maintained by Fixed Assets, Accounting Services. A copy of the title may be requested by the budget center, departmental liaison or the primary contact.
H. Departmental Asset Tracking System (DATS)
Non-Capitalized Equipment less than $5,000
Electronic equipment acquisitions with a unit value less than $5,000 are not tagged centrally. The tracking and maintaining of departmental electronic equipment will be the responsibility of the department. All electronic equipment is required to be entered into the web-based Departmental Asset Tracking system. Surprise audits may be conducted to verify equipment listed in the DAT system matches the actual electronic equipment in use.
Departmental Asset Tracking System
Grants and Contracts Administration
Request for Trade In Document
Surplus Property Office